Snack giant Mondelez International said a combination of cyberattack and goods and services tax (GST) in India impacted global revenues by 260 basis points.

“Our second quarter results were largely in line with our expectations, absent the malware incident and the transition impact of the India GST, which were a combined headwind of 260 basis points to our top line growth,” Brian Gladden, CFO at Mondelez, said at an investors call on Wednesday.

“Excluding these items, our organic net revenue growth would have been essentially flat. The impact of these incidents masked solid results in a number of areas.”

Mondelez, the world’s second-largest confectionery company, witnessed shipping and invoicing delays caused by a cyberattack during the last week of June, and much around the same time, the Indian market was preparing for a new tax regime that prompted traders and retailers to halt their purchase from consumer goods companies.

The maker of Cadbury and Oreo said India business could have grown in double digits, but due to the impact of GST, grew mid-single digit. “Chocolate continued to be strong as we executed our plans, and the overall market conditions remained good,” said Gladden.

The company said it expects to recover in the second half, and also explained that the base quarters have seen issues such as demonetisation.

As a market, India contributes roughly 4% to Mondelez’s global sales, but is increasingly becoming an important country for sales as well as a production hub. The company has spent nearly Rs 2,000 crore in India in the past few years when it set up a manufacturing plant in Andhra Pradesh and a global research, development and quality (RDQ) hub in Maharashtra.

The chocolate category in India is valued at close to Rs 8,000 crore, and Mondelez leads the category with 65% share. But rivals are increasing their focus on India. Mars recently announced an investment of Rs 1,005 crore to set up manufacturing plant in Maharashtra while Ferrero said it will double its investment here to Rs 1,600 crore in the next few years.